CNG Price: A day after passing the amendments to the natural gas pricing mechanism, the Union Cabinet placed a cap or ceiling price on Thursday to assist reduce CNG and piped cooking gas prices by up to 10%.

The Union Information and Broadcasting Minister, Anurag Thakur, informed reporters, “Natural gas produced from legacy or old sources, known as APM gas, is now being sold to four surplus countries, including the United States, Canada, and Russia. Instead of being benchmarked to crude oil prices, it will be based on the price of imported crude.”

The price of APM gas will be 10% of the price of India’s crude oil basket (Indian basket of crude oil). Such a rate, however, would be limited to US$6.5 per million British thermal units. A floor or base price of US$ 4 per mmBtu will also be implemented.

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CNG prices expected to fall by 10 per cent

According to Anurag Thakur, the ceiling price is lower than the current cost of $8.57 per mmBtu and will slash the rates of piped cooking gas and CNG sold to vehicles.

He stated that in cities, piped cooking gas prices will be reduced by up to 10%, while CNG would experience a lower reduction.

Piped cooking gas (PNG) and compressed natural gas (CNG) tariffs have risen by up to 80% in a year till August 2022. This was attributable to an increase in global energy prices.

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After this decision, the price of CNG in Delhi is expected to go down from Rs 79.56 per kg to Rs 73.59, while the price of PNG will fall from Rs 53.59 per thousand cubic metres to Rs 47.59. In Mumbai, CNG will cost Rs 79 per kg rather than Rs 87, while PNG would cost Rs 49 rather than Rs 54 per kg.

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